Finance Portfolio Report - 20 April 2016

Financial Report

The attached periodic financial statements are as at 31 March 2016. The attached periodic financial statements can be found in the minutes from the Council Meeting on the website.
Minutes of the General Council Meeting - 20 April 2016 (PDF)

The cash, operating cash, working capital and funded long term liabilities ratios are all within reasonable parameters.

With regard to the Comprehensive Income Statement:

75% of the total revenue budget has been achieved which, has it aligned with the percentage of the year expired.
In terms of operating expenses, 67% of the total budget is already expended. Costs incurred for employee benefits are on target with budget allocation. The expenditures under materials and services have been reviewed in a 3rd quarter operating budget revision which is proposed to be adopted at this meeting.

Capex Report

Capital expenditure to date amounts to $34.2 Million equivalent to 60.5% of the $56.5 Million revised 2015/16 Capital Expenditure (Capex) Budget.

Third Quarter Operational Budget Revision

A review of the 2015-2016 budget has been undertaken as at 15 March 2016. The amended Operational Budget results in an operating surplus of $ 973,629. Compared to the 2nd Quarter Amended Budget, the 3rd Quarter budget review resulted in a decrease in the estimated Net Surplus of $150,636. The adjustment is mainly due to the following but is better detailed in the documents provided to Council:

The main Grants Subsidies, Contributions and Donations adjustments are as follows:
The transfer of $1,400,000 of the Regional Rail Trail grant to CapEx, offset by matching reduction in expenditure.
Decrease in Roads & Drainage Contract funding $1.5M, offset by matching reduction in expenditure. This for the Royalties for Regions (R4R) funded, ‘Swicker’s Project’ is to be carried over to the 2016/17 financial year.

This overall result in the operating surplus is a commendable outcome for Council. It has come from expenditure restraint and good budget management by the various budget managers.
Fourth Quarter Rate Notices

At the time of writing this briefing the rate notices were scheduled to be posted on Tuesday 19th April 2016 with the last day for discount being 24 May 2016.